Friendable, Inc. (OTCMKTS: FDBL), the mobile technology company developing mobile applications with a social focus, seems to be poised for a turnaround owing to the recent news released. Thus, it has become our next profile. The latest news is the announcement that its mobile application became number one in Canada for 1 day last month. We will tell you more in this article, but first have a look at the chart and check out how the volume and share price have been moving up recently.
The company was founded on June 5, 2007. After several mergers with other corporations developing different activities, on February 3, 2014, it acquired access to the financial markets in the United States thanks to a merger with iHookup Social, Inc. Also, on October 26, 2015, the company changed itsname to Friendable, Inc. and obtained the new ticker “FDBL”. We believe that this new name was necessary to show the activity of the company as the company says in its last 10-k “to match the rebranding so as to be more specific to the Company’s core values and its products/services, creating a more recognizable brand.”
The company owns two products: Friendable and Fan Pass. Friendable is the Friendable app, which was released in 2013. The numbers of this app are astonishing:
- 1 million downloads
- 700,000 registered users
- 580,000 user profiles
- Featured in popular music videos such as the 2016 hit “Ain’t Your Mama” by singer Jennifer Lopez (over 390 million views on YouTube)
For those investors, who are not used to use mobile applications, this is the way Friendable looks like:
Fan Pass is a new application that consists of a live streaming video application. The key in this new app is that individuals will be able to watch “exclusive back-stage and uncensored video content” from celebrities. Friendable communicated that it is creating partnerships with artists, such as Austin Mahone, Meghan Trainor, Fetty Wap among others.
As we announced in the beginning, on March 23, 2017, the company communicated that it had been number one on social media in Canada. But, not only that, it reached the top 50 in China. The rankings were said to be in the paid application category of social networking within each country’s Apple iTunes app Store users. Additionally, the company released that the Friendable App is ranked within the top 150 apps in the category of free and paid social networking. Robert A. Rositano Jr., Friendable CEO, said the following regarding this announcement:
“We have not implemented any proactive marketing initiatives since completing our strategic investment in Hang W/, Inc. in October 2016 and embarking on a relationship designed to bring new opportunity for Friendable and our product offerings. Periodically, we pause all marketing to evaluate the marketplace’s organic trends so we can generate a new baseline against which to measure the ROI on our various marketing programs. We expect our metrics to go flat from time to time, which is typically a function of marketing initiatives or not. We were pleasantly surprised to see our rankings spike in China and Canada — two diverse markets.” Source
In our opinion, the fact that the company is able to obtain this kind of growth organically is fantastic. Some other apps and Internet giants, such as Facebook or Google, are making acquisitions everyday to increase the use of its Internet applications.
On February 14, 2017,, the company said that the organic initiatives of the company had generated over 8 million total users. The CEO noted this time that these results may in the future enable the company to obtain at least $3 million in equity financing. We believe that this is great news and may explain the recent turnaround in the stock. These were the most significant words:
“We believe a $3-million-dollar financing with no debt will give the Company up to 15 months of operating capital that will allow the Friendable app, and soon Fan Pass Live, to deliver accelerated growth in a marketplace that has emerged as one of the most rapidly growing sectors; live streaming video.” Source
The press release added that the company was currently in discussions with high net worth individual investors and investment bankers, who may assist with the receipt of equity in return of debt of the company. The company’s main objective is to receive 15 months of working capital to finance the future operations of the company.
For the traders interested in making an investment in this company, please have a look first at the current balance sheet and other relevant financial figures as of December 31, 2016:
- Shares Outstanding: 571,100,443
- Cash: $119,804
- Total Assets: $162,776
- Convertible debentures short-term: $2,171,923
- Total Liabilities: $3,951,560
As you surely figured out that as compared to the total assets, the amount of liabilities are much larger. Thus, if the company obtains the equity financing that is looking for, the share price will jump dramatically, since it is because of the massive liabilities that have pushed the stock lower.
Friendable is delivering very good news and the market is liking what it’s hearing. First, the company announced that its organic growth strategy is working very well, since the company is obtaining new users every month. Additionally, it was released that the CEO is in conversation with potential stock or debt holders and working with investment bankers to obtain equity financing in return of debt. If this transaction works out, the share price will jump since the financial risk will be reduced. This would most likely be a great catalyst for the stock and will definitely confirm the turnaround.
We will be updating our subscribers as soon as we know more. For the latest updates on FDBL, sign up below!
Disclosure: We have no position in FDBL and have not been compensated for this article.